Nigeria Would Make Crypto Exchanges Base Their Chief Executive There
The SEC has published draft rules with a 2 billion naira capital floor and a resident-CEO test. Nothing is in force yet. The post Nigeria Would Make Crypto Exchanges Base Their Chief Executive There appeared first on The Rio Times .
Nigeria's market regulator unveiled draft rules on August 20, 2026, that would require crypto exchanges serving the country to have their chief executive residing in Nigeria, alongside a minimum capital of US$1.5 million. These proposed rules, titled "Proposed Rules on Digital and Virtual Asset Operations, Custody and Markets," are not yet law and are currently open for public comment until September 3, 2026.
The system would classify exchanges, custodians, platform operators, offering platforms, and tokenisation platforms into five license categories. Exchanges and custodians would need at least US$1.49 million in capital, while smaller categories would require 500 million or 200 million naira respectively. Registration costs 30 million naira for the main license classes and 15 million naira for virtual asset service providers.
A key provision stipulates that an applicant must incorporate in Nigeria, maintain a registered office there, and ensure that its chief executive, managing director, or equivalent principal officer is resident in Nigeria. This rule, known as the "localisation test," carries a significant extraterritorial impact, potentially deterring foreign exchanges.
The capital floor for exchanges has been maintained at 2 billion naira since January 2026, with a compliance deadline of June 30, 2027. Nigeria has received over US$92 billion of crypto in the year to June 2025, making it the leading sub-Saharan African market.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
